Managing director of the Mining Investment Insurance Fund (MIIF), pointing
to the scope of activities of the fund said: “The fund is 100% state-owned
and is considered a supportive fund of the government. It is a specialized
fund with 100% government investment which belongs to IMIDRO (Iranian Mines
and Mining Industries Development and Renovation Organization).

“The function of this fund is essentially covering the investment risk in
the mines and mining industries in the various cycles of the value chain of
the mining sector, and the exploration sector, which has the highest risk of
investment, is in need of this risk coverage, of course most of the sectors
are also under the same coverage.”

Farid Dehqani, stating that our main function is to cover the exploration
risk, noted: “If the private sector investor is in need of providing
financing, the investment fund for mining activities along with the risk of
exploration will also support the investors in the finance sector due to the
issuance of the exploration insurance.

“In other words, if the insurer intends to invest in exploration alone, he
will receive an exploratory insurance from us, and if he reaches no
conclusion in that investment and does not reach the desired deposit, 80% of
his investment will be paid by the MIIF.”

Acceptance of operation permit as guarantee by the MIIF during mining
activities

The MIIF chief, saying that the banks do not accept the operation permit of
the mines as guarantee, noted: “Despite legal measures taken to this end,
the banks would not accept the mine and its operation permit as guarantee;
but the fund accepts the permit as a documented pledge and on that basis
issues a credit insurance payable to the agent bank.”

Referring to the backup services of the MIIF, he said: “The fund will
consider the technical, economic, and financial justifications of the
individual and will take into account all the mining machinery needed for
extraction. Also, in the processing section in order to prevent crude sales
and create more value added, it will provide significant support and good
financial resources for the investors in the technology sector in order to
enable them to expand that sector.”

Dehqani further added: “For example, in the concentrating section, if an
investor takes measures to create a processing unit, we will support that
section, the same as we support the extraction section, by providing him
with easy access to financial resources. In addition, if the mine of a mine
owner or a processor is in a specific condition, the fund will provide him
with loans at 4% to 8% through the subsidies fund. These subsidies will help
increase competitiveness among different sections.”

Achievements of the MIIF, particularly over the past year

Referring to the performance of the MIIF from the beginning up to now,
Dehqani said: “To date, we have created about 6,500 billion rials credit
line to receive facilities and the money goes to the exploration, extraction
and processing. Our strategy is mainly focused on supporting mines that
enjoy the advantage of competitiveness in terms of production, reserve
potentials and availability of the sellers market.”

He continued: “We have also signed a memorandum of understanding with
various banks.”

What is your program for attraction of investors in the New Year?

Referring to the programs of the fund for the attraction of the investors,
Dehqani said: “Thanks to the efforts of our friends and colleagues in this
direction, low-cost financial resources have been attracted and mine owners
after completing administrative formalities will gain access to those
resources.”

He added: “In connection with the remaining cases, due to the increase in
the capital we collect from our stockholders, we have increased the amount
of loans and credits to the customers and hope that if exploration resources
out of the funds provided by the Ministry of Industry, Mine and Trade are
also available for the New Year, we can have a good leap, and if there are
no resources, we should use other resources of IMIDRO.”

Stressing that all such efforts are directed towards increasing investment
in the mining sector, he said: “The more we could reduce investment risk in
the mining sector, the more we can increase profitability, and the easier we
can make access of the mine owners to the financial resources, the more
successful we will become.”